Gold Higher On Reports India Could Buy the Rest of the IMF's Hoard (GLD)

Surprise! Gold is on the move again, following reports that India is open to buying more gold from the International Monetary Fund (IMF) after buying 200 tonnes for $6.7 billion on November 3.

The Reserve Bank of India (RBI) may well buy IMF's remaining hoard of 201.3 tonnes on acceptable terms, which are now under negotiation, according to reports in India's Financial Chronicle.

A government official said that the additional purchase would depend on the "successful pitching by RBI." "RBI is an independent body, and the government does not interfere in its affairs. It will get the gold if its bid is successful and at the price it has offered." said the official.

Spot gold is up to $1180.80 in early trading today, up from yesterday's close of $1168.20.

Many investors have been gaining exposure to gold through ETF SPDR Gold Shares (NYSE: GLD) or through the miners as represented by Market Vectors Gold Miners ETF (NYSE: GDX), which seeks to replicate the price and yield performance of the NYSE Arca Gold Miners Index. Top holdings of the index include Barrick Gold (NYSE: ABX), Goldcorp (NYSE: GG), Newmont Mining (NYSE: NEM), Kinross Gold (NYSE: KGC), and Yamana Gold (NYSE: AUY). There is also a new gold ETF - ETFS Physical Swiss Gold Shares (NYSE: SGOL) - that traders are starting to use.

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